Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January:

Issued 10,000 shares of common stock for $15,000 cash.

Purchased land for $12,000, signing a note payable for the full amount.

Purchased office equipment for $1,200 cash.

Received cash of $14,000 for services provided to customers during the month.

Purchased $300 of office supplies on account.

Paid employees $10,000 for their first month's salaries.

What was the total amount of Gotebo's liabilities following these six transactions?

A) $12,300.

B) $27,300.

C) $22,600.

D) $15,500.

Answer: A